The Goodyear Tire & Rubber Company (GT) 10-Q 2006 Q3 Quarterly report

EXHIBIT 12

THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

	9 Months
	Ended
	September
	30,		12 Months Ended December 31,
(Dollars in millions)	2006		2005		2004		2003			2002		2001
EARNINGS
Pre-tax income from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees	$	259	$	573	$	373	$	(642	)	$	51	$	(302	)
Add:
Amortization of previously capitalized interest		9		11		11		11			10		10
Distributed income of equity investees		5		7		3		3			2		3
Pre-tax losses of equity investees for which charges arising from guarantees are included in fixed charges		—		—		—		10			7		35
Total additions		14		18		14		24			19		48
Deduct:
Capitalized interest		5		7		7		8			7		2
Minority interest in pre-tax income of consolidated Subsidiaries with no fixed charges		7		12		11		11			7		6
Total deductions		12		19		18		19			14		8
TOTAL EARNINGS	$	261	$	572	$	369	$	(637	)	$	56	$	(262	)
FIXED CHARGES
Interest expense	$	314	$	411	$	369	$	296		$	243	$	298
Capitalized interest		5		7		7		8			7		2
Amortization of debt discount, premium or expense		14		27		61		44			9		6
Interest portion of rental expense (1)		75		101		91		89			76		74
Proportionate share of fixed charges of investees accounted for by the equity method		—		—		—		7			5		4
TOTAL FIXED CHARGES	$	408	$	546	$	528	$	444		$	340	$	384
TOTAL EARNINGS BEFORE FIXED CHARGES	$	669	$	1,118	$	897	$	(193	)	$	396	$	122
RATIO OF EARNINGS TO FIXED CHARGES		1.64		2.05		1.70			*		1.16			**

*	Earnings for the year ended December 31, 2003 were inadequate to cover fixed charges. The coverage deficiency was $637 million.
**	Earnings for the year ended December 31, 2001 were inadequate to cover fixed charges. The coverage deficiency was $262 million.
(1)	Interest component of rental expense is estimated to equal 1/3 of such expense, which is considered a reasonable approximation of the interest factor.